Works great for me. And the Skype that's in the market doesn't work for the Bionic. You can only make voice calls. I downloaded the hacked version and I think I heard that the hacked version supports video for the Bionic.
I am having the same issue here. The only thing to fix it is to reboot the phone. Once you select that button again it will do the same thing. I have been working on this issue all day. I even wiped the device and started over with no luck. I am taking it back to Verizon tonight.
I am also having the same issues. As soon as I select the front facing icon, the camera shuts down and won't start until I reboot the phone. Will visit Verizon tomorrow.